Right now is an exciting time in healthcare, especially for Jeffrey Flynn, administrator of New York City-based Gramercy Surgery Center and CEO of Gramercy Healthcare Management, LLC. Despite the barriers to overcome in successfully tying payment to value, healthcare is trending in that direction and many payers and unions are seeing the cost savings opportunities surgery centers present.
"Unions are pushing their people to go to surgery centers after seeing the cost factor and the [lower] infection rates. Unions are self-funded and they want to use us because we are less expensive," Mr. Flynn says. "Some major payers are telling their doctors they want cases done in surgery centers."
Coupled with the drive to lower costs, the New York market is also encountering a loss of operating room space. Many independent surgery centers are seeing the opportunity inherent in the changing marketplace and are partnering with one another in a new initiative. In this initiative, surgery centers would strategize together on the best center to offer certain services. For instance, one center may be offering spinal services but may not have the OR space to effectively perform these higher acuity cases. Another independent surgery center with room for expansion can offer to take on those cases, and move other cases to the ASC with the limited space.
"In New York, there is a lot of business for all of us and we are coordinating with one another," Mr. Flynn says. "We talk about what we can do to enhance each other."
Mr. Flynn is speaking with representatives of independent ASCs throughout New York on how they can mutually benefit from a partnership and is eyeing other centers that may need to undergo some improvements before joining the partnership. For instance, a center in Brooklyn may be located in the ideal spot for a certain set of patients, but may be lacking in adherence to infection control protocols unions and independent practice association require for quality control. Rather than discounting this ASC as a partner, Mr. Flynn said he and the ASC representatives engage in "frank conversations" about how the center can bring quality up, such as improving the number of times employees wash their hands. It could also be as simple as adding some plants and updated magazines to the lobby, as patients pay particular notice to such amenities that may impact their overall care experience.
While the evolving competitive New York market may pose challenges for some practices and hospitals to stay profitable, the landscape paints a different picture for ASCs especially as unions and large national payers push providers to take their cases to surgery centers.
"New York could easily handle another six or seven new multispecialty ASCs which may scare some people," Mr. Flynn says. "However, if you look where things are happening and where payers are going, it is time to get on board with that."